THE BUSINESS VISION AND MISSION Clear mission is needed before alternative strategies can
be formulated and implemented.
Vision Statements Participation from diverse managers is important in
What do we want to become? developing the mission.
A clear vision provides the foundation for developing a
comprehensive mission statement. Steps:
Vision statement should be established first and foremost. 1. Have managers read related articles.
The vision statement should be short, preferably one 2. Have managers prepare a vision and mission statement
sentence. for the organization.
Many managers as possible should have input into 3. Merge the documents into one and distribute.
developing the statement. 4. Gather feedback from managers.
It should reveal the type of business the firm engages. 5. Meet to revise the final document.
Analysis The Importance of Vision and Mission Statements
Ten Benefits of Having a Clear Mission and Vision:
Starbucks Vision Statement Starbucks Improved Vision
1. Achieve clarity of purpose among all managers and
(Paraphrased) Statement
employees.
Starbucks strives to be the Starbucks’ vision is to be the 2. Provide a basis for all other strategic planning activities,
premier roaster and retailer of most well-known, specialty including the internal and external assessment,
specialty coffee globally. coffee, tea, and pastry
establishing objectives, developing strategies, choosing
restaurant in the world, offering
sincere customer service, a among alternative strategies, devising policies,
welcoming atmosphere, and establishing organizational structure, allocating
unequaled quality. resources, and evaluating performance.
3. Provide direction.
Vision Statement Examples 4. Provide a focal point for all stakeholders of the firm.
General Motors’ vision is to be the world leader in 5. Resolve divergent views among managers.
transportation products and related services. (Author 6. Promote a sense of shared expectations among all
comment: Good statement) managers and employees.
PepsiCo’s responsibility is to continually improve all 7. Project a sense of worth and intent to all stakeholders.
aspects of the world in which we operate—environment, 8. Project an organized, motivated organization worthy of
social, economic—creating a better tomorrow than today. support.
(Author comment: Statement is too vague; it should 9. Achieve higher organizational performance.
reveal beverage and food business) 10. Achieve synergy among all managers and employees.
Royal Caribbean’s vision is to empower and enable our
employees to deliver the best vacation experience for our A Resolution of Divergent Views
guests, thereby generating superior returns for our A genuine decision must be based on divergent views to
shareholders and enhancing the well-being of our have a chance to be a right and effective decision.
communities. (Author comment: Statement is good but Considerable disagreement among an organization’s
could end after the word “guests”) strategists over vision and mission statements can cause
trouble if not resolved.
Mission Statements
What is our business? Characteristics of a Mission Statement
Sometimes called a creed statement, a statement of It is a declaration of attitude and outlook.
purpose, a statement of philosophy, a statement of 1. Broad in scope; does not include monetary amounts,
beliefs, a statement of business principles, or a statement numbers, percentages, ratios, or objectives.
“defining our business”. 2. Fewer than 150 words in length.
A mission statement reveals what an organization wants 3. Inspiring
to be and whom it wants to serve. 4. Identifies the utility of a firm’s products.
An enduring statement of purpose that distinguishes one 5. Reveals that the firm is socially responsible.
firm from another. 6. Reveals that the firm is environmentally responsible.
Declaration of a firm’s “reason for being.” 7. Includes nine components: customers, products or
services, markets, technology, concern for
Vision and Mission survival/growth/profits, philosophy, self-concept,
Great benefits can be achieved if an organization concern for public image, and concern for employees.
systematically revisits their vision and mission statement. 8. Reconciliatory
Treats them as living documents. 9. Enduring
Considers them to be an integral part of the firm’s
culture. A Customer Orientation
Profit and vision are necessary to effectively motivate a According to Vern McGinnis, a mission statement should:
workforce. Define what the organization is.
Define what it aspires to be.
Limited to exclude some ventures.
Broad enough to allow for growth.
The Process of Developing Vision and Mission Statements Distinguish firm from all others.
Frame work for evaluating activities. everything we do, we strive to that is brought to our attention.
Stated clearly—understood by all. act with honesty, openness, We engage in conduct that
fairness and integrity (6). enhances our corporate
An effective mission statement: reputation and employee morale
(9). We are committed to act in
Anticipates customer needs
the highest ethical manner and
Identifies customer needs respect the rights and dignity of
Provides product/service to satisfy needs others. (6).
Identifies the utility of a firm’s products to its customers.
Proposed Mission Statements for L’Oréal
Utility of Firm’s Products to Customers Our mission is to design, produce, and distribute the world’s
Do not offer me things. best fragrances, perfumes, and personal care products (2) to
Do not offer me clothes. Offer me attractive looks. women, men, and children (1) by utilizing the latest technological
Do not offer me shoes. Offer me comfort for my feet and improvements (4). We empower our highly creative team of
the pleasure of walking. researchers to develop safe, eco-friendly (7) products that will
Do not offer me a house. Offer me security, comfort, and enable our firm to profitably grow (5) through thousands of retail
a place that is clean and happy. outlets. We strive to be one of the most socially responsible (8)
Do not offer me books. Offer me hours of pleasure and firms on the planet (3) and appreciate our employees (9) making
the benefit of knowledge. that happen, while following the “golden rule” in all that we do (6).
Do not offer me CDs. Offer me leisure and the sound of
music. Summary:
Do not offer me tools. Offer me the benefits and the Drucker says that developing a clear business vision and
pleasure that come from making beautiful things. mission is the “first responsibility of strategists.”
Do not offer me furniture. Offer me comfort and the Every organization has a unique purpose and reason for
quietness of a cozy place. being.
Do not offer me things. Offer me ideas, emotions, This uniqueness should be reflected in vision and mission
ambience, feelings, and benefits. statements.
Please, do not offer me things. The nature of a business vision and mission can represent
either a competitive advantage or disadvantage for the
Components of a Mission Statement firm.
1. Customers – who are the firm’s customers? It can keep everyone pulling in the same direction.
2. Products or services – what are the firm’s major products
or services?
3. Markets – geographically, where does the firm compete?
4. Technology – is the firm technologically current?
5. Survival, growth, and profitability – is the firm
committed to growth and financial soundness?
6. Philosophy – what are the basic beliefs, values,
aspirations, and ethical priorities of the firm?
7. Self-concept – what is the firm’s major competitive
advantage?
8. Public image – is the firm responsive to social,
community, and environmental concerns?
9. Employees – are employees a valuable asset of the firm?
Evaluating and Writing Mission Statements
There is no one best mission statement for a particular
organization, so when it comes to evaluating mission
statements, good judgment is required.
The statement should motivate stakeholders to action, as
well as be customer-oriented, informative, inspiring, and
enduring.
Two Mission Statements Critiqued
PepsiCo Royal Caribbean
We aspire to make PepsiCo the We are loyal to Royal
world’s (3) premier consumer Caribbean and Celebrity and
products company, focused on strive for continuous
convenient foods and beverages improvement in everything we
(2). We seek to produce healthy do. We always provide service
financial rewards for investors with a friendly greeting and a
(5) as we provide opportunities smile (7). We anticipate the
for growth and enrichment to needs of our customers and
our employees (9), our business make all efforts to exceed our
partners and the communities customers’ expectations. We
(8) in which we operate. And in take ownership of any problem
